Bulgaria's 2026 budget raises pensions, wages amid fiscal strain

Parliament's Budget and Finance Committee has moved the state budget for 2026 to a second reading. The bill projects a deficit of 5.7% of GDP – the highest level in two decades – and contains dozens of amendment proposals (47 to 69, depending on the source).

The governing coalition proposes a 7.8% increase in pensions, amounting to over €1 billion, a 5% rise in public‑sector salaries (€400 million), and a 12.6% hike in the minimum wage to €620. Insurance thresholds are also lifted, with the maximum insurable income set at €2 300. The budget expands child‑benefit eligibility and earmarks €30 million for holiday bonuses.

Opposition initiatives for larger social payments, higher child tax relief and increased subsidies for religious institutions were rejected. Deputy Konstantin Prodano stressed that, despite the tight fiscal situation, the budget will “unfreeze” previously suspended maternity benefits by 2027 and continue limited economic assistance to Ukraine.